Mobileye Global Inc. (Nasdaq: MBLY) has sold controlling shareholder Intel Corp. (Nasdaq: INTC) 35 million shares in Israel’s Advanced Driving Assistance Systems (ADAS). Shares in the secondary offering were priced at $42 per share, bringing in $1.6 billion in total for Intel. Mobileye’s stock price closed on Wall Street last night up 2.84% at $43.52, giving a market capitalization of $35.062 billion.
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Since the Wall Street IPO was held in October 2022, Mobileye’s share price has doubled in value. During the IPO, Intel did not sell any shares but the prospectus included Mobileye’s commitment to pay Intel a cash dividend of $3.5 billion by 2025 and most of the money raised through the offering was earmarked for this payment.
After selling the shares in the secondary offering, Intel is left with an 88% stake in Mobileye. Joint book managers Morgan Stanley and Goldman Sachs have an option to buy an additional 5.25 million shares within 30 days, so that Intel could receive an additional $243 million and Intel’s stake in Mobileye would decrease accordingly if the option exercised.
In addition to Intel, institutional investors like Baillie Gifford, Fidelity, and Norway’s sovereign wealth fund have built positions in Mobileye, while co-founder and CEO Amnon Shashua owns $30.7 million worth of shares.
Published by Globes, Israel business news – en.globes.co.il – on June 8, 2023.
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